“On one hand, capital growth expectations and foreign investor interest remains very strong, pointing to continued strength across the industry,” said Mr Judah. Conversely, residential construction expectations are steadying after a very strong run, giving some operators pause.

“The latest ANZ/Property Council Survey reveals Victorian residential construction activity expectations have fallen 26 points over the past eighteen months with a 1.2 point decline occurring in the June 2016 quarter.

“These subtle shifts in sentiment, activity and growth expectations need to be carefully considered by both investors and policy makers alike.

“Foreign and domestic investors have a wide variety of global investment choices available to them. The State Government should be mindful of this when finalising their policy settings for next week’s State Budget.”

Fast Facts:

Victorian index score: declined three points to 137 from the March 2016 quarter to the June 2016 quarter;